This information was published on September 17th 2003 in the press release of Interfax Rating Agency.

Press Release.

The Russian Interfax Rating Agency, the strategic partner of the Moody’s Investors Service agency in Russia assigned the credit ratings to Vozrozhdeniye Bank by national scale. The long-term credit rating has been assigned at the Baa3 (rus) level and the short-term credit rating — RUS-3.

The Bank’s rating is justified by a strong market position throughout the Moscow Region, as well as by support on the part of administrations of those regions the Bank collaborates with. The above rating is limited by the risk of the second restructuring of the largest loan.

The principal business of the Bank is focused in the Moscow Region, one of the most intensively developing regions with high income per capita. The Bank’s customer base across the Region is rather broad and diversified. In addition, the significant part of the Bank’s loan operations takes place in Moscow.

For the purposes of attracting resources the Bank is oriented towards middle-sized and small businesses, also attracts the funds of the regions’ administrations the Bank cooperates with. With respect to the loan portfolio, loans to industry and trade predominate. Certain part of loans is extended in cooperation with administrations of Moscow and the Moscow Region.

Concentration of exposure risk per a group of the Bank’s major borrowers is at the low level, but exposure per one borrower is very high. The Bank’s largest loan (to OAO Moskvich) accounts for 11.3% of the Bank’s loan portfolio (66% of the capital). The above enterprise is under supervision of the watch group initiated by the Moscow Government In security for the loan the Bank is holding the equipment which liquidation value (less sales expenses), by independent opinion, accounts for 85% of the loan value. However, there is a risk of delaying the process of restructuring this enterprise’s loans, when the above loan would be unprofitable and remain non-liquid.

The Bank is characterized by a significant gap between assets and liabilities by maturity. However, it has visibly decreased compared to the year 2001. The Bank’s liquidity risks are not very high due to the sound resource base and moderate dependence on the major creditors.

The Bank’s capitalization is at a satisfactory level, profitability is limited by rather high operating expenses and consequences of the loan portfolio restructuring. In case of deterioration of the borrowers’ financial position the Bank can rely on the support of the Government. The Bank manifests a high ability to negotiate with the Government authorities, also due to coordination of its credit policy with regional administrations.

The long-term rating Baa3 (rus) by national scale of Interfax RA means an adequate level of creditworthiness compared to other Russian borrowers/borrowings. The borrowers are able to fulfil their financial obligations in favorable conditions. However, their creditworthiness is more sensitive to the negative changes of the environment. The short-term rating RUS-3 by national scale of Interfax RA reflects an average level of creditworthiness among other Russian borrowers/borrowings. Changes in external environment can lead to the growth of credit risks.

Interfax Rating Agency specialized on evaluation of credit risks in Russia enters the International group Interfax, a leading supplier of the political and business information from the emerging markets of the European and Asian countries. In October 2001, Interfax Rating Agency entered into agreement on strategic cooperation with international rating agency Moody’s Investors Service. In June 2002, Moody’s Investors Service announced signing an agreement on purchase of about 20% shares of Interfax Rating Agency.